Venture capitalist Arthur Cheong believes that despite the slow market conditions in the crypto industry, two sectors are thriving and offer potential rewards for those who pay attention. According to Cheong, liquid staking and decentralized derivatives exchanges are worth noting.

In the case of liquid staking, Cheong points out that the queue time to stake Ethereum (ETH) is currently over 40 days, indicating high demand that surpasses the available supply. This suggests a strong growth potential for liquid staking as more individuals seek to stake their ETH.

Regarding decentralized derivatives exchanges, Cheong highlights the impressive products being developed by some of the best-decentralized finance (DeFi) teams. He notes that even in a bear market, these exchanges generate annual revenues of $10-$15 billion. This indicates the resilience and profitability of the sector, further reinforcing its growth potential.

Cheong also mentions on Twitter that the ratio of decentralized exchange volumes relative to centralized exchanges is at an all-time high. He predicts a future where crypto exchanges will be polarized, with extremely compliant exchanges implementing strict rules akin to traditional finance brokers, while decentralized exchange protocols will operate outside the regulatory framework designed for financial intermediaries.

Overall, Cheong’s analysis suggests that liquid staking and decentralized derivatives exchanges are thriving and offer lucrative opportunities, despite the overall market conditions in the crypto industry. Those who pay attention and are willing to take risks in these sectors may be well rewarded in the future. do your own research before investing in crypto.

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